Operating Segments and Related Information

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Operating Segments and Related Information

Operating Segments and Related Information

Operating Segments

The Company has two business divisions:  Commercial Systems and Government Systems. 

Commercial Systems Division

The Commercial Systems division is focused on the design, manufacture, and marketing of instrument, sensor, and electronics solutions that facilitate improved situational awareness and environmental analytics for commercial customers. The division is comprised of two operating segments: Thermal Vision and Measurement and Raymarine. The Thermal Vision and Measurement segment provides advanced thermal imaging solutions where the customer need is to see at night or in adverse conditions or to image a scene gathering valuable temperature information. The Raymarine segment provides electronics for the maritime market and is a leading global provider of fully integrated “stem to stern” networked electronic systems for boats of all sizes.

Government Systems Division

The Government Systems division designs, manufactures, and markets advanced imaging and detection systems for government markets where high performance is required. The division is comprised of three operating segments: Surveillance, Detection, and Integrated Systems. The Surveillance segment provides enhanced imaging and recognition solutions to a wide variety of military, law enforcement, public safety, and other government customers around the world for the protection of borders, troops, and public welfare. The Detection segment produces sensor instruments that detect and identify chemical, biological, radiological, nuclear, and explosives (“CBRNE”) threats for military force protection, homeland security, and commercial applications. The Integrated Systems segment develops platform solutions for combating sophisticated security threats and incorporates multiple sensor systems in order to deliver actionable intelligence for wide area surveillance, intrusion detection, and facility security.

Note 17. Operating Segments and Related Information—(Continued)

As of January 1, 2011, the Company merged the Thermography and Commercial Vision Systems operating segments into the Thermal Vision and Measurement operating segment. Raymarine was acquired on May 14, 2010, creating the Raymarine operating segment. Finally, ICx was acquired on October 4, 2010 and the ICx operating results for the period from acquisition through December 31, 2010 were reported as a separate segment. Effective as of January 1, 2011, ICx results are reported in the Detection and Integrated System segments, and a portion is reported in the Surveillance segment. Beginning January 1, 2011, the former Government Systems operating segment is also included in the Surveillance operating segment.

Because Raymarine was acquired in May 2010 and ICx was acquired in October 2010, the operating results for the years ended December 31, 2012 and 2011 for the Raymarine, Detection and Integrated Systems operating segments are not comparable to the operating results for the prior periods described below.

The accounting policies of each of the segments are the same. The Company’s President and Chief Executive Officer evaluates the performance of each segment based upon its revenue and earnings from operations. On a consolidated basis, these amounts represent revenue and earnings from operations as represented in the Consolidated Statements of Income. Other consists of corporate expenses and certain other operating expenses not allocated to the operating segments for management reporting purposes. Intersegment revenues are recorded at an estimated arms length basis and are eliminated in consolidation.

Accounts receivable and inventories for operating segments are regularly reviewed by management and are reported below as segment assets. All remaining assets, liabilities, capital expenditures and depreciation are managed on a Company-wide basis.

Operating segment information is as follows (in thousands):

	Year Ended December 31,
	2012			2011			2010
Revenue—External Customers:
Thermal Vision and Measurement	$	628,019		$	660,256		$	574,852
Raymarine	158,183			171,489			104,089
Surveillance	486,355			577,552			671,250
Detection	63,312			79,918			23,554
Integrated Systems	69,489			54,847			14,692
	$	1,405,358		$	1,544,062		$	1,388,437
Revenue—Intersegments:
Thermal Vision and Measurement	$	15,204		$	18,553		$	16,670
Raymarine	7			7			—
Surveillance	23,013			32,266			28,284
Detection	4,233			3,394			—
Integrated Systems	1,537			6,639			—
Eliminations	(43,994		)	(60,859		)	(44,954		)
	$	—		$	—		$	—
Earnings (loss) from operations:
Thermal Vision and Measurement	$	171,280		$	194,674		$	163,664
Raymarine	11,173			11,855			8,284
Surveillance	160,219			208,510			256,208
Detection	1,089			(5,568		)	(2,541		)
Integrated Systems	5,168			1,659			32
Other	(45,599		)	(97,935		)	(65,336		)
	$	303,330		$	313,195		$	360,311

Note 17. Operating Segments and Related Information—(Continued)

	December 31,
	2012		2011
Segment assets (accounts receivable, net and inventories):
Thermal Vision and Measurement	$	265,197	$	233,888
Raymarine	74,980		60,093
Surveillance	317,944		320,827
Detection	31,861		32,447
Integrated Systems	26,559		17,774
Discontinued Operations	—		603
	$	716,541	$	665,632

Revenue and Long-Lived Assets by Geographic Area

Information related to revenue by significant geographical location, determined by the end customer, is as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
United States	$	717,841	$	803,423	$	734,748
Europe	337,163		382,388		318,321
Other foreign	350,354		358,251		335,368
	$	1,405,358	$	1,544,062	$	1,388,437

Long-lived assets are comprised of net property and equipment, net identifiable intangible assets, goodwill and other long-term assets. Long-lived assets by significant geographic locations are as follows (in thousands):

	December 31,
	2012		2011
United States	$	582,387	$	587,592
Europe	386,871		284,171
Other foreign	10,778		9,627
	$	980,036	$	881,390

Major Customers

Revenue derived from major customers is as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
United States government	$	373,540	$	444,882	$	473,948